Bernstein: U.S. Cryptocurrency Task Force Will Focus on Establishing National Bitcoin Reserve

On February 17th, as per CoinDesk, Bernstein stated in a research report on Monday that the U.S. cryptocurrency working group will center on establishing a national Bitcoin (BTC) reserve. This move has the potential to trigger similar endeavors globally. Analysts led by Gautam Chhugani wrote, "If the U.S. constructs a Bitcoin reserve, it may lead governments worldwide to rush to purchase Bitcoin as one of their reserve assets." The report indicated that establishing a Bitcoin strategic reserve would give rise to a series of structural issues. "It will be a question of whether the Federal Reserve or the Treasury purchases Bitcoin," the report noted, highlighting that if it is the Federal Reserve, legislative approval would be required. The report also stated, "How will the Federal Reserve Bank finance cryptocurrency purchases?" Bernstein said the Fed could potentially do so by issuing debt or selling a portion of its gold reserves. The report added that the U.S. government could also incorporate $20 billion worth of Bitcoin seized from criminal organizations into the national reserve. The brokerage firm pointed out that the Trump administration also announced the establishment of a Sovereign Wealth Fund (SWF). Bernstein stated, "Such a fund would regard key U.S. cryptocurrency companies/market leaders as strategic assets to hold." "Investors should get ready for the next bull market and focus on Bitcoin and Bitcoin-related stocks."